MN Business Tip Of The Day: Is It Time To Ditch Your Bank?

February 6, 2014  |  

Have you ever asked yourself if you are satisfied with your bank’s service? If you take a closer look, you may become increasingly dissatisfied with the fees, hidden penalties, or lousy interest rates you’re dealing with. Frequently, however, people don’t know where else to go. The solution may be as close as your nearest credit union. Take a look at these three important distinctions that define a credit union and its services:

Credit Unions Are Member Owned. Being member owned means having an account at a credit union makes you a part owner in the enterprise. Unlike a bank, therefore, you’re more likely to be treated as a person rather than as simply a number and a nuisance.

Credit Unions Are Not-For-Profit. Their nonprofit status helps explain why interest rates at credit unions are significantly better than at banks. Additionally, fees are fewer and smaller than what is found at banks. Profits that credit unions make are distributed as dividends to their members. In contrast, you find banks that are continuously inventing new fees and policies to boost profits.

Credit Unions Are Thriving In Spite of Bank Efforts. Almost since their inception, banks have been working to legislate credit unions out of existence, or at least limit who can join. Clearly, banks have failed in their efforts. Virtually anyone in the U.S. can belong to a credit union, based on where they live, work, or the associations they belong to.

Credit unions count nearly 90 million Americans as members and save those members thousands in lower interest rates and reduced fees. For example, credit unions issue credit cards that tend to forego annual fees or charge punitive interest rates for a single late payment. Additionally, most credit unions offer free checking accounts and penalties for overdrawing tend to be lower. You may indeed be satisfied with your bank, but isn’t it time you asked yourself and found out?

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